Correlation Between OMX Stockholm and Vitec Software
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By analyzing existing cross correlation between OMX Stockholm Mid and Vitec Software Group, you can compare the effects of market volatilities on OMX Stockholm and Vitec Software and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in OMX Stockholm with a short position of Vitec Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of OMX Stockholm and Vitec Software.
Diversification Opportunities for OMX Stockholm and Vitec Software
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OMX and Vitec is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding OMX Stockholm Mid and Vitec Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vitec Software Group and OMX Stockholm is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on OMX Stockholm Mid are associated (or correlated) with Vitec Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vitec Software Group has no effect on the direction of OMX Stockholm i.e., OMX Stockholm and Vitec Software go up and down completely randomly.
Pair Corralation between OMX Stockholm and Vitec Software
Assuming the 90 days trading horizon OMX Stockholm Mid is expected to generate 0.38 times more return on investment than Vitec Software. However, OMX Stockholm Mid is 2.64 times less risky than Vitec Software. It trades about -0.1 of its potential returns per unit of risk. Vitec Software Group is currently generating about -0.12 per unit of risk. If you would invest 152,520 in OMX Stockholm Mid on January 30, 2024 and sell it today you would lose (2,424) from holding OMX Stockholm Mid or give up 1.59% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
OMX Stockholm Mid vs. Vitec Software Group
Performance |
Timeline |
OMX Stockholm and Vitec Software Volatility Contrast
Predicted Return Density |
Returns |
OMX Stockholm Mid
Pair trading matchups for OMX Stockholm
Vitec Software Group
Pair trading matchups for Vitec Software
Pair Trading with OMX Stockholm and Vitec Software
The main advantage of trading using opposite OMX Stockholm and Vitec Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OMX Stockholm position performs unexpectedly, Vitec Software can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Vitec Software will offset losses from the drop in Vitec Software's long position.OMX Stockholm vs. Divio Technologies AB | OMX Stockholm vs. Nordic Iron Ore | OMX Stockholm vs. COOR Service Management | OMX Stockholm vs. I Tech |
Vitec Software vs. FormPipe Software AB | Vitec Software vs. Surgical Science Sweden | Vitec Software vs. Teqnion AB |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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